Warrington Borough Council has bought Eddie Stobart’s distribution HQ at Stretton for £26.1m, a 4.35% net initial yield.
The distribution HQ totalling 164,048 sq ft, has been purchased from Ropemaker Properties and adjoins the M56 at the established Stretton Green Distribution Park, Warrington.
Ropemaker originally bought the building in 2013 for £16m by way of a sale and leaseback from Eddie Stobart until July 2033 with fixed annual increases equivalent to 1.5% pa.
The 17.59 acre site incorporates a distribution warehouse, vehicle maintenance unit, head office and expansion land.
Warrington Borough Council used its in house property team for the purchase.
The Council’s executive Board approved the proposal to acquire the property for financial investment purposes to support the medium term financial plan and reasons of economic growth.
Members of the executive Board were told the purchase supported the Council’s Property Investment Strategy and seeks to deliver the ambition to become financially sustainable through longer term planning as set out in the Council’s Corporate Strategy 2018-2020.